ADRE LAW BOOK 2025

2025 Arizona Real Estate Law Book

Updated Oct. 2024 www.azre.gov

Arizona Real Estate Laws

Katie Hobbs GOVERNOR

Susan Nicolson COMMISSIONER

Updated October 2024 www.azre.gov

ARIZONA REAL ESTATE LAW BOOK 2025 Edition

STATE OF ARIZONA Department of Real Estate

LAW BOOK 2025 EDITION

The Arizona Department of Real Estate retains the Exclusive right to control the publication, sale, reproduction or other use of the Arizona Real Estate Law Book.

The text of this publication can be found on the Department’s website at: www.azre.gov Arizona Department of Real Estate 100 N. 15th Avenue, Suite 201 Phoenix, AZ 85007 To contact ADRE, please visit the Message Center at: www.azre.gov

The Arizona Department of Real Estate Law Book is intended solely for use as a desk reference tool and should not be viewed as a substitute for the Arizona Revised Statutes.

All reasonable effort has been made to ensure the accuracy of the contents.

HIGHLIGHTED AND CAPITALIZED sections signify changes from the most recent legisla tive session and rulemaking. A highlighted bill citation at the beginning of the section of statute will identify changes were made in that section. Exceptions to highlighting and capitalization include; technical changes made by Legislative Council and renumbering are not identified and areas deleted from statute are removed without indication.

TABLE OF CONTENTS

SECTIONS IMPACTED BY ARIZONA SESSION LAWS, 2024

1

Arizona Real Estate Laws

10 10 10 10 12 12 12 20

CONSTITUTION OF THE STATE OF ARIZONA

Article 26.

§ Section 1. Powers of real estate broker or salesman TITLE 32, CHAPTER 20 - REAL ESTATE

Article 1 - Real Estate Department

32-2101. Definitions

32-2102. Administration of chapter by real estate department; purpose 32-2103. Placement of monies collected; revision of fees 20 32-2104. Real estate advisory board; members; terms; qualifications; compensation; chairman; duties 20 32-2105. Meetings of the state real estate advisory board 21 32-2106. Real estate commissioner; appointment; qualifications 21 32-2107. Powers and duties of commissioner; compensation; administration of department; seal; revolving fund 21 32-2107.01. Recorded disclaimer of unlawful restrictions 22 32-2108. Powers and duties of commissioner to make investigations and require information 22 32-2108.01. License applicants; fingerprint clearance cards; definition 23 32-2109. Employment; compensation 24 32-2110. Interest of department officer or employee in real estate company prohibited 24 32-2111. Attorney general as legal adviser and representative of commissioner 24 32-2112. Admissibility of certified copies of department records in evidence 24 32-2113. Recorded disclosure for territory in the vicinity of a military airport or ancillary military facility 24 32-2114. Recorded disclosure for land under a military training route or restricted air space 25 32-2114.01. Military electronics range 25 32-2115. Department’s website; military training route map; restricted air space map; military electronics range map 26 32-2116. Military training routes; contacts 26 32-2117. Earth fissure maps; posting; immunity 26 32-2118. Competition with private enterprise; prohibition 27 32-2119. Consumer education; water supply definitions; map 27 Article 2 - Licensing 28 32-2121. Applicability of article; exemption 28 32-2122. License required of brokers and salespersons 30 32-2123. Application for license as broker or salesperson 31 32-2124. Qualifications of licensees 31 32-2125. Licenses for corporations, limited liability companies or partnerships 35 32-2125.01. Issuance of license; multiple licenses; use 36 32-2125.02. Nonresident licensees; service of process; employment 36 32-2125.03. Confidentiality of licensee’s residential address, electronic mail address, residential telephone number and social security number 37 32-2126. Place of business required; notice of change in location; failure to give notice as cancellation of li cense; signs 37 32-2127. Licenses for additional places of business; branch office manager; broker’s temporary absence 38 32-2128. Display and possession of license certificate 38 32-2129. Advance payment of license fees 39 32-2130. Renewal of licenses; education requirements; broker licensee renewal as salesperson licensee 39 32-2131. Reinstatement of license 40 32-2132. Fees 42

32-2133. Temporary broker’s license

43 43 43 43 46 46 48 48 49 50

32-2134. Temporary cemetery salesperson’s license

32-2134.01. Membership camping salesperson certificate of convenience 32-2135. Real estate schools; courses of study; instructors; certification

32-2136. Broker management clinics 32-2137. Cancellation of license

Article 3 - Regulation

32-2151. Disposition of funds; trust money deposit requirements 32-2151.01. Broker requirements; record keeping requirements; definition 32-2151.02. Real estate employment agreements; definition 32-2152. Action by broker or salesperson to collect compensation 51 32-2153. Grounds for denial, suspension or revocation of licenses; letters of concern; provisional license; retention of jurisdiction by commissioner; definitions 51 32-2153.01. Consent order; terms 54 32-2154. Cease and desist orders; hearing 54 32-2155. Restriction on employment or compensation of person as broker or salesperson 54 32-2156. Real estate sales and leases; disclosure 55 32-2157 Written notice of changes; summary suspensions; hearing; voluntary surrender of license 55 32-2158. Hearing; witnesses; deposition; service of process 56 32-2159. Judicial review; costs; transcript 56 32-2160. Filing of complaint by commissioner; prosecution 56 32-2160.01. Civil penalties 57 32-2161. False statements or publications concerning land, subdivision or membership camping contract for sale or lease; classification; definition 57 32-2162. Sale of cemetery property for speculation unlawful 58 32-2163. Unlawful acts; out-of-state broker; cooperation agreement 58 32-2164. Unlawful subdivision lot sales 58 32-2165. Unlicensed activities; violation; classification 59 32-2166. Activities while incarcerated; violation; classification 59 Article 3.1 - Property Management 60 32-2171. Definitions 60 32-2172. Scope of article 60 32-2173. Property management agreements; contents, termination 60 32-2174. Property management accounts 61 32-2175. Property management records; requirements; audits 62 32-2176. Payment of finder fees to apartment tenants; limits; prohibited activities; civil penalty; definitions 63 Article 4 - Sale of Subdivided Lands 64 32-2181; Notice to commissioner of intention to subdivide lands; unlawful acting in concert; exceptions; deed restrictions; definition 64 32-2181.01. Power of commissioner to exempt certain subdivisions or fractional interests by special order 69 32-2181.02. Exempt sales and leases 69 32-2181.03. Lot reservations; expiration 71 32-2182. Examination of subdivision by commissioner; fee; time limit to determine violation 73 32-2183. Subdivision public reports; denial of issuance; unlawful sales; voidable sale or lease; order prohib iting sale or lease; investigations; hearings; summary orders 73 32-2183.01. Advertising material; contents; order prohibiting use; costs of investigation; drawings or contests 78 32-2183.02. Recording of actions 80 32-2183.03. Civil liabilities 80 32-2183.04. Surety bond requirement; form; cancellation; effective date; certificate of deposit 81 32-2183.05. Military training route disclosure; military electronics range disclosure; residential property 82 32-2183.06. Restricted air space disclosure; residential property 83

32-2184. Change of subdivision plan after approval by commissioner; notice 32-2185. Delivery of clear title by vendor on performance of contract by vendee 32-2185.01. Sale of unimproved lots or parcels; conditions precedent; methods 32-2185.02. Permanent access to subdivided land; rescindable sales

84 84 84 86 86 86 87 87 87 88 88

32-2185.03. Deposit of fees

32-2185.06. Contract disclosures; contract disclaimers

32-2185.07. Jurisdiction

32-2185.08. Recordable forms of contracts 32-2185.09. Civil penalties; limitation Article 5 - Real Estate Recovery Fund

32-2186. Real estate recovery fund; liability limits; definitions 32-2187. Payments to real estate recovery fund 89 32-2188. Statute of limitations; service of summons; application for payment; insufficient monies; definition 89 32-2188.01. Notice of claim to judgment debtor; response 92 32-2188.02. Correction of deficiencies in the application 93 32-2188.03. Investigation and discovery 94 32-2188.04. Final decision and order on claim; notice 94 32-2188.05. Claimant’s right to appeal denial of claim; service of notice of appeal; response; failure to file response 95 32-2189. Management of fund 96 32-2191. Commissioner’s standing in court 96 32-2192. Subrogation of rights; collection 96 32-2193. Waiver of rights 96 32-2193.01. Effect of article on disciplinary action 97 32-2193.02. Surety bond requirement; form; cancellation; effective date; certificate of deposit 97 Article 6 - Organization and Regulation of Cemeteries 98 32-2194. Exceptions 98 32-2194.01. Notice to commissioner of intention to sell cemetery property; exceptions; restrictions 98 32-2194.02. Examination by commissioner; fee 100 32-2194.03. Issuance or denial of certificate of authority; voidable sale; order prohibiting sale; investigations by commissioner; public hearings; summary orders 100 32-2194.04. Contract disclosures; contract disclaimers 102 32-2194.05. Advertising material; contents; order prohibiting use 103 32-2194.06. Records of transactions 103 32-2194.07. Recording of actions 104 32-2194.08. Administrative penalties 104 32-2194.09. Civil liabilities 104 32-2194.10. Change of cemetery plan after approval by commissioner; notice; fee 105 32-2194.11. Delivery of clear title by cemetery of cemetery plots 105 32-2194.12. Permanent access to cemetery land 105 32-2194.13. Deposit of fees 105 32-2194.14. Cemetery brokers; disclosures 105 32-2194.15. Jurisdiction 105 32-2194.16. Sale of undeveloped cemetery property 106 32-2194.17. Transaction of cemetery business 106 32-2194.18. Application for authority to open and operate cemeteries 106 32-2194.19. Investigation of applicant before granting of certificate of authority where needed 106 32-2194.20. Right of cemetery to make rules and regulations 106 32-2194.21. Survey of property; maps and plats 106 32-2194.22. Filing maps and declaration of dedication 106 32-2194.23. Nonapplication of law against perpetuities 107 32-2194.24. Trust fund to be established before certificate of authority granted 107

32-2194.25. Trust fund to be established before existing cemetery can advertise as endowed-care cemetery 107 32-2194.26. Initial deposit required in endowment-care fund 107 32-2194.27. Restrictive use of income from endowed-care fund; obligation 108 32-2194.28. Deposit in endowed-care fund from sales 108 32-2194.29. Posting of signs by cemeteries 108 32-2194.30. Restriction on use of care funds 109 32-2194.31. Crematories 109 32-2194.32. Opening and closing of burial places 109 32-2194.33. Cemetery property owners; address notification reclamation; abandoned cemetery plot 109 Article 7 - Sale of Unsubdivided Lands 112 32-2195. Notice to commissioner of intention before offering for sale or lease of unsubdivided land; defini tion 112 32-2195.01. Power of commissioner to exempt certain unsubdivided land by special order 114 32-2195.02. Examination of unsubdivided land by commissioner; fee 114 32-2195.03. Unsubdivided land reports; denial of issuance; order prohibiting sale or lease; investigations; hearings; summary orders 114 32-2195.04. Sale of lots or parcels of unsubdivided lands; conditions precedent; methods 117 32-2195.05. Advertising material; contents; order prohibiting use; costs of investigation 118 32-2195.06. Civil liabilities 119 32-2195.07. Jurisdiction 120 32-2195.09. Recordable forms of contracts 120 32-2195.10. Change of plan after approval by commissioner; notice 120 32-2195.11. Civil penalties; limitation 121 32-2195.12. Recording of actions 121 Article 9 - Real Estate Timeshares 122 32-2197. Definitions 122 32-2197.01. Creation of timeshare plans; ratio 124 32-2197.02. Notice of intent to sell; application for timeshare plan public report; authorization for pre-sales 124 32-2197.03. Purchase agreements; rescission of contract or agreement; cancellation or termination of time share interests 127 32-2197.04. Notification of material change 127 32-2197.05. Escrow or trust account; agreement; evidence of completion; financial assurance 128 32-2197.06. Declaration of dedication 129 32-2197.07. Examination of plan by commissioner; fees 130 32-2197.08. Issuance of public report and amended public report by commissioner on timeshare plan; denial of issuance; additional information; use of another state’s public report 130 32-2197.09. Rescindable sale or lease 135 32-2197.10. Timeshare interest reservations 135 32-2197.11. Developer supervisory duties 137 32-2197.12. Blanket encumbrance; lien; alternative assurance 137 32-2197.13. Hearing on denial of public report 138 32-2197.14. Investigations; orders; hearings 138 32-2197.15. Order; appointment of receiver; writ of ne exeat 139 32-2197.16. Separate disclosures 139 32-2197.17. Advertising and promotional requirements; telemarketing and promotional employees; presen tations and tours, drawings and contests; commissioner’s authority; disclosures 140 32-2197.18. Recording of actions 143 32-2197.19. Civil liabilities; prohibitions; limitations 144 32-2197.20. Civil penalty 145 32-2197.21. Payment of finder fees; limits; prohibited activities; records; definition 145 32-2197.22. Exemptions; disclosures; exempt communications 145 32-2197.23. Power of commissioner to exempt timeshare plans 148

32-2197.24. Applicability of article Article 10 - Membership Camping

148 150 150 150 152 153 153 153 154 154 156 156 158

32-2198. Unlawful offer or sale of membership camping contract 32-2198.01. Application for membership camping public report; signature; amendment 32-2198.02. Issuance of public report; representations prohibited

32-2198.03. Exemptions

32-2198.04. Examination of project by commissioner

32-2198.05. Contracts; cancellation

32-2198.06. Execution of notes; assignment; purchaser’s defenses retained 32-2198.08. Denial, suspension or revocation of a public report

32-2198.09. Fees

32-2198.10. Advertising plans; disclosures; lotteries and drawings

32-2198.11. Purchaser’s remedies 32-2198.13. Construction of this article

158 32-2198.14. Advertising availability of campgrounds to campground members; blanket encumbrances 158 Article 11 - Administrative Hearings 160 32-2199 Administrative Hearings 160 32-2199.01. Hearing; rights procedures 160 32-2199.02. Orders; penalties; disposition 161 32-2199.04. Rehearing; appeal 161 32.2199.05. Condominium and planned community hearing office fund 161 ARIZONA ADMINISTRATIVE CODE, 164 TITLE 4. PROFESSIONS AND 164 OCCUPATIONS, CHAPTER 28. 164 STATE REAL ESTATE DEPARTMENT 164 Article 1. General Provisions 164 R4-28-101. Definitions 164 R4-28-102. Document Filing; Computation of Time 165 R4-28-103. Licensing Time-frames 165 R4-28-104. Development Inspection Fee 166 R4-28-105. Expired 166 Table 1. Time-frames (Calendar Days) 167 ARTICLE 3. LICENSURE 170 R4-28-301. General License Requirements; Non-resident License 170 R4-28-302. Employing Broker’s License; Non-resident Broker 172 R4-28-303. License Renewal; Reinstatement; Changes of Personal Information, License, or License Status; Professional Corporation or Professional Limited Liability Company Licensure; Administrative Severance 175

R4-28-304. Branch Office; Branch Office Manager R4-28-305. Temporary License, Certificate of Convenience

179 180 181 184 184 185 189 189 192 194 194 194 195 198 198

R4-28-306. Unlawful License Activity ARTICLE 4. EDUCATION

R4-28-401. Prelicensure Education Requirements; Waiver R4-28-402. Continuing Education Requirements; Waiver; Distance Learning

R4-28-403. License Examinations

R4-28-404. Real Estate School Requirements, Course and Instructor Approval

R4-28-405. Expired

ARTICLE 5. ADVERTISING R4-28-502. Advertising by a Licensee R4-28-503. Promotional Activities R4-28-504. Development Advertising ARTICLE 7. COMPENSATION R4-28-701. Compensation Sharing Disclosure

A real estate broker shall disclose to all the parties in a transaction, in writing before closing, the name of each employing broker who represents a party to the transaction and who will receive compensation from the transaction. 198 ARTICLE 8. DOCUMENTS 198 R4-28-802. Conveyance Documents 198 R4-28-803. Contract Disclosures 198 R4-28-804. Rescission of Contract 199 R4-28-805. Public Report Receipt 200 ARTICLE 11. PROFESSIONAL CONDUCT 202 R4-28-1101. Duties to Client 202 R4-28-1102. Property Negotiations 203 R4-28-1103. Broker Supervision and Control 203 PART A. APPLICATION FOR PUBLIC REPORT, CERTIFICATE OF AUTHORITY, OR SPECIAL ORDER OF EXEMPTION 204 R4-28-A1201. Development Name; Lot Sales; Applicant 204 R4-28-A1202. Development Map; Location; Land Characteristics 205 R4-28-A1203. Flood and Drainage; Land Uses; Adverse Conditions 206 R4-28-A1204. Utilities 206 R4-28-A1205. Water Supply 207 R4-28-A1206. Sewage Disposal 208 R4-28-A1207. Streets and Access 208 R4-28-A1208. Flood Protection and Drainage Improvements 209 R4-28-A1209. Common, Community, or Recreational Improvements 210 R4-28-A1210. Master Planned Community 210 R4-28-A1211. Assurances for Completion and Maintenance of Improvements 210 R4-28-A1212. Schools and Services 213 R4-28-A1213. Property Owners’ Association 213 R4-28-A1214. Development Use 214 R4-28-A1215. Development Sales 214 R4-28-A1216. Title Reports and Encumbrances 215 R4-28-A1217. ADEQ Approval 215 R4-28-A1218. Property Registrations in Other Jurisdictions 215 R4-28-A1219. Condominium Developments 215 R4-28-A1220. Foreign Developments 216 R4-28-A1221. Cemetery Developments (Expired Oct. 1, 2024) 216 R4-28-A1222. Membership Camping Developments 216 R4-28-A1223. Affidavit 216 PART B. GENERAL INFORMATION 218 R4-28-B1201. Expedited Registration For Improved Subdivision Lots and Unsubdivided Lands (Expired October 1, 2024 218 R4-28-B1202. Conditional Sales Exemption 218 R4-28-B1203. Material Change; Public Report Amendments 219 R4-28-B1204. Cemetery Notice; Amendments 220 R4-28-B1205. Contiguous Parcels (Expired October 1, 2024) 220 R4-28-B1206. Filing with HUD 220 R4-28-B1207. Subsequent Owner 220 R4-28-B1208. Public Report Correction 221 R4-28-B1209. Options; Blanket Encumbrances; Releases 221 R4-28-B1210. Earnest Money 221 R4-28-B1211. Recordkeeping 221 ARTICLE 13 ADMINISTRATIVE PROCEDURES 224 R4-28-1302. Service of Pleadings Subsequent to Complaint and Notice 224 R4-28-1303. Information Obtained in an Investigation 224 R4-28-1304. Response; Default 224

R4-28-1305. Notice of Appearance of Counsel

224 225 225 226 227 228 228 228 228 228 229 229 229 229 230 230 230 231 231 231 231 231 232 233 233 233 234

R4-28-1307. Expired

R4-28-1310. Rehearing or Review of Decision; Response; Decision

R4-28-1313. Correction of Clerical Mistakes SUBSTANTIVE POLICY STATEMENTS

ADDITIONAL STATUTES OF

RELEVANCE Title 11 - Counties

Chapter 6 - County Planning and Zoning 11-831. Review of land divisions; definitions Title 12 - Courts and Civil Proceedings Chapter 6 - Judicial Review of Administrative Decisions

12-901. Definitions 12-902. Scope of article

12-903. Power of supreme court to make procedural rules 12-904. Commencement of action; transmission of record

12-905. Jurisdiction and venue 12-906. Service of process

12-907. Appearance of parties to the appeal

12-908. Parties

12-909. Pleadings and record on review 12-910. Scope of review 12-911. Powers of superior court

12-912. Costs

12-913. Appellate review 12-914. Rules of procedure

Title 25 - Marital and Domestic Relations Chapter 3 - Dissolution Of Marriage 234 25-320. Child support; factors; methods of payment; additional enforcement provisions; definitions 234 Title 32 - Professions and Occupations 235 Chapter 43 - Board Licensure, Certification, And Registration 235 32-4301. License, certificate or registration expiration; military active duty; one hundred eighty-day exten sion 235 32-4302. Out-of-state applicants; residents; military spouses; licensure; certification; exceptions; notice 236 32-4303. Military education, training and experience 237 32-4304. Occupational and professional licenses; websites; reporting; definition 238 Title 41 - State Government 239 Chapter 6 - Administrative Procedure 239 Article 1 - General Provisions 239 41-1001.01. Regulatory bill of rights; small businesses 239 41-1006. Employees providing agency assistance; identification and publication 241 41-1009. Inspections and audits; applicability; exceptions 241 Article 7 - Military Administrative Relief 245 41-1071. Military relief from administrative procedures; process 245 Article 7.1 - Licensing Time Frames 245 41-1072. Definitions 245 41-1073. Time frames; exception 246 41-1074. Compliance with administrative completeness review time frame 246 41-1075. Compliance with substantive review time frame 247 41-1076. Compliance with overall time frame 247 41-1077. Consequence for agency failure to comply with overall time frame; refund; penalty 247 41-1079. Information required to be provided 248 Article 7.2 - Licensing Requirements 248 41-1080. Licensing eligibility; authorized presence; documentation; applicability; definitions 248

41-1080.01. Licensing fees; waiver; annual report; definitions Article 10 - Uniform Administrative Hearing Procedures

249 250 250 251

41-1092. Definitions

41-1092.01. Office of administrative hearings; director; powers and duties; fund 41-1092.02. Appealable agency actions; application of procedural rules; exemption from article 253 41-1092.03. Notice of appealable agency action or contested case; hearing; informal settlement conference; applicability 254 41-1092.04. Service of documents 255 41-1092.05. Scheduling of hearings; prehearing conferences 255 41-1092.06. Appeals of agency actions and contested cases; informal settlement conferences; applicability 256 41-1092.07. Hearings 257 41-1092.08. Final administrative decisions; review; exception 258 41-1092.09. Rehearing or review 260 41-1092.10. Compulsory testimony; privilege against self-incrimination 260 41-1092.11. Licenses; renewal; revocation; suspension; annulment; withdrawal 261 41-1092.12. Private right of action; recovery of costs and fees; definitions 261 Article 11 - Occupational Regulation 262 41-1093. Definitions 262 41-1093.01. Occupational regulations; limitations 263 41-1093.02. Administrative proceedings 263 41-1093.03. Enforcement; fees and costs 263 41-1093.04. Occupational license, permit or certificate or other state recognition rights; petition for review of criminal record; annual report 263 41-1093.05. License applicants; notice 266 41-1093.06. Occupational licenses; drug offense conviction; eligibility; exceptions; definition 266 41-1093.07. Private employers; effect of article 266 41-1093.08. Occupational or professional licensing boards; health profession regulatory boards; denial, sus pension or revocation; prior criminal offense; review; procedures; notice; definitions 267 Chapter 27 - Legislative Review of Agencies and Expiration of New Programs 268 41-3030.05. State real estate department; termination July 1, 2030 268 Title 44 - Trade and Commerce 269 Chapter 1 - Contracts 269 44-101. Statute of frauds 269 Chapter 5 - Exclusive Property Engagement 269 44-501. Definitions 269 44-502. Unlawful practices; listing services timeline; void agreement 270 44-503. Enforcement; recording prohibited; liability 270 Chapter 10 - Competition and Competitive Practices 271 44-1522. Unlawful practices; intended interpretation of provisions 271 Chapter 15.1 - Residential Property 271 44-5101. Wholesale buyers; wholesale sellers; disclosure; unlawful practice; definitions 271

SECTIONS IMPACTED BY ARIZONA SESSION LAWS, 2024

The Arizona Legislature adjourned Sine Die the Fifty-sixth Legislature, Second Regular Session on June 15, 2024 at 9:55 P.M. The General Effective Date of bills passed and signed into law was Saturday, September 14, 2024. The following list represents laws passed during the Fifty-sixth Legislature that were tracked by the Depart ment. The list provided is intended as an educational tool only and is not intended to be comprehensive, as it may not include all bills that directly or indirectly impact the Department, administrative law, or the real estate industry. Visit the state legislature’s website at www.azleg.gov for additional information related to each new law.

Chapter Number

Bill Number and Name

ARS Section 44-1201

Bill Section

Action

Effective Date

Ch. 3 SB1059 - judge

1 Amend General Effec tive Date 1 Amend General Effec tive Date 1 Amend General Effec tive Date 2 Amend

ments; interest rates

Ch. 4 SB1270 - Recipro cal deposits; escrow agents; definitions Ch. 10 SB1271 - Rental-pur chase property; elec tronic disclosures Ch. 16 HB2016 - Grandfa thered right; subse quent AMA; exten sion

6-834

44-6801 44-6810

N/A 1, 2, 3 New Sec tions

Emergency Measure with Retroactive Date of Feb. 29, 2024 and Repeal Date of Dec. 31, 2024

1

Ch. 27 HB2141 - Condo miniums; interior improvements; ap provals Ch. 29 HB2191 - Property; criminal damage Ch. 34 HB2408 - Property tax assessment; de stroyed property Ch. 52 SB1171 - Real estate department; licens ing; administration

33-1221

1 Amend General Effec tive Date

13-1602

1 Amend General Effec tive Date 1 Amend General Effec tive Date 1 Amend General Effec tive Date 2 Amend

42-15157

32-2101 32-2104 32-2106 32-2116 32-2123 32-2124 32-2125 32-2126 32-2127 32-2130 32-2132 32-2135 32-2136 32-2151

3 Amend 4 Amend

32-2108.01

5 6 7 8 9

32-2125.02

10 11 12 13 14 15

16 32-2151.01 17 32-2153 18 32-2163 19 32-2174 20 32-2197.08 21 32-2197.10 22 32-2197.16 23

2

Ch. 52 (cont’d)

SB1171 - Real estate department; licens ing; administration

24

New Section

Retention of Current Ad visory Board Members related to Amending 32 2104 General Effec tive Date

Ch. 58 SB1432 - Unlawful restrictive covenants; uniform act

33-531

1

New Section New Section New Section New Section New Section New Section New Section New Section New Section New Section

33-532

1

33-533

1

33-534

1

33-535

1

33-536

1

33-537

1

33-538

1

33-539

1

N/A

2

Severability

Ch. 62 HB2055 - Under ground water stor age; permitting Ch. 63 HB2129 - Improved lot or parcel; defini tion Ch. 64 HB2146 - Mobile homes; cooling; pro hibition

45-871.01

1 Amend General Effec tive Date 1 Amend General Effec tive Date 1 Amend Emergency Measure, Filed on April 2, 2024

32-2101

33-1452

3

Ch. 78 SB1218 - exclusive agreements; residen tial property sales

44-501

1

New Section New Section New Section New Section New Section

General Effec tive Date

44-502

1

44-503

1

N/A

2

Legislative Intent Severability

N/A

3

Ch. 83 SB1367 - Occupa tional license; crimi nal record Ch. 89 HB2110 - Mechanics’ liens; notice Ch. 91 HB2308 - Occupa tional licenses; crim inal offense; prohibi tion

41-1093.04

1 Amend General Effec tive Date 1 Amend General Effec tive Date 1 Amend General Effec tive Date

33-992.01

41-1093.04

Ch. 91 (Cont’d)

HB2308 - Occupa tional licenses; crim inal offense; prohibi tion

41-1093.08

2

New Section

General Effec tive Date

20-1591

1 Amend General Effec tive Date

Ch. 103 SB1042 - cremation (now: title compa nies; recorded docu ments; DIFI) Ch. 118 HB2160 - Domestic water improvement districts; reviews

N/A

2

New section

Legislative Intent

48-251 48-252 48-253

1 Amend General Effec tive Date 2 Amend

3 Amend

4

Ch. 122 HB2521 - Partition; property; inheritance

12-3401

1

New Section New Section New Section New Section New Section New Section New Section New Section New Section New Section New Section New Section

General Effec tive Date

12-3402

1

12-3403

1

12-3404

1

12-3405

1

12-3406

1

12-3407

1

12-3408

1

12-3409

1

12-3410

1

12-3411

1

12-3412

1

14-3911

2 Amend

33-1820

1

New Section

General Effec tive Date

Ch. 124 HB2698 - planned communities; declar

ant control (now: declarant control; planned communities

33-442

1 Amend General Effec tive Date

Ch. 131 HB2119 - homeown er’s associations;

fees; related parties (now: real property) (now: homeowner’s associations; fees)

5

Ch. 137 HB2195 - on-site wastewater treat ment facilities; per mitting

49-245

1 Amend General Effec tive Date

N/A

2

New Section New Section

Legislative Intent

9-462.10

1

General Effec tive Date

Ch. 141 HB2297 - adaptive reuse; commercial buildings; zoning (now: zoning; adap tive reuse; commer cial buildings) (now: commercial build ings; adaptive reuse)

33-1202 33-1256 33-1802 33-1807

1 Amend General Effec tive Date 2 Amend

Ch. 151 HB2648 - motor

vehicle manufactur ers; TPT; exemption (now: condominiums; planned communi ties; lian; assessment

3 Amend 4 Amend

Ch. 155 SB1016 - Homeown ers’ associations; flagpoles

33-1808

1 Amend General Effec tive Date

9-462.04

1 Amend General Effec tive Date

Ch. 172 SB1162 - telecom munications fund; report; posting (now: residential zoning; housing; assessment; hearings

9-462.10 (filed as 9-462.11)

2

New Section New Section

9-469

3

6

Ch. 176 SB1431 - right to

12-1551 42-18152 42-18202 42-18204 42-18205 42-18206 42-18231

1 Amend General Effec tive Date 2 Amend

redeem; foreclosure; sale

3 Amend 4 Amend 5 Amend 6 Amend

7

New Section New Section New Section New Section New Section New Section New Section

42-18232

7

42-18233

7

42-18234

7

42-18235

7

42-18236

7

N/A

8

Applicability

Ch. 180 HB2662 - homeown ers’ associations; meeting agendas Ch. 188 HB2243 - finger printing; criminal history; records checks

33-1248 33-1804

1 Amend General Effec tive Date 2 Amend 1 Amend General Effec tive Date 2 Amend

41-619.55

41-1750 41-1758

3 Amend 4 Amend 5 Amend

41-1758.03 41-1758.07

N/A

6

New Section New Section New Section

N/A

7

Conditional Repeal of Sec tion 6 Emergency Measure, Filed on May 17, 2024

N/A

8

7

Ch. 192 HB2325 - Backyard fowl; regulation; pro hibition

9-462.10 (filed as 9-462.12) 11-820.04

1

New Section New Section New Section New Section New Section

General Effec tive Date

2

Ch. 196 HB2720 - Accessory dwelling units; re quirements Ch. 197 HB2721 - Municipal zoning; middle hous ing Ch. 209 HB2897 - General appropriations act; 2024-2025 Ch. 224 SB1181 - Groundwa ter replenishment; members lands; areas

9-461.18

1

General Effec tive Date

9-500.39 9-462.10 (filed as 9-462.13)

2 Amend

1

General Effec tive Date

N/A

85

N/A

129 New

Section

48-3771 48-3775 48-3778 48-3780 48-3781

1 Amend General Effec tive Date 2 Amend

3 Amend 4 Amend 5 Amend

N/A

6

New Section New Section New Section

Ch. 226 SB1081 - Exemption area; assured water supply Ch. 253 HB2368 - Transpor tation; groundwater; Douglas AMA

45-576.10

1

General Effec tive Date General Effec tive Date

45-555.01

1

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Arizona Real Estate Laws

CONSTITUTION OF THE STATE OF ARIZONA Article 26. RIGHT OF LICENSED REAL ESTATE BROKERS AND SALESMEN TO PREPARE INSTRUMENTS INCIDENT TO PROPERTY TRANSACTIONS § Section 1. Powers of real estate broker or salesman

Section 1. Any person holding a valid license as a real estate bro ker or a real estate salesman regularly issued by the Arizona State Real Estate Department when acting in such capacity as broker or salesman for the parties, or agent for one of the parties to a sale, exchange, or trade, or the renting and leasing of property, shall have the right to draft or fill out and complete, without charge, any and all instruments incident thereto including, but not limited to, pre liminary purchase agreements and earnest money receipts, deeds, mortgages, leases, assignments, releases, contracts for sale of realty, and bills of sale.

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TITLE 32, CHAPTER 20 - REAL ESTATE ARTICLE 1 - REAL ESTATE DEPARTMENT

32-2101. Definitions Amended by Ariz. Sess. Laws Ch. 52, (2024) Amended by Ariz. Sess. Laws Ch. 63, (2024) In this chapter, unless the context otherwise requires: 1. “Acting in concert” means evidence of collaborating to pursue a concerted plan. 2. “Address of record” means any of the following: (a) The address where a licensee practices or is otherwise employed. (b) A licensee’s residential address. 3. “Advertising” means attempting by publication, dissemination, exhibition, solicitation or circu lation, oral or written, or for broadcast on radio or television to induce directly or indirectly any person to enter into any obligation or acquire any title or interest in lands subject to this chapter, including the land sales contract to be used and any photographs, drawings or artist’s presentations of physical conditions or facilities existing or to exist on the property. Advertising does not include: (a) Press releases or other communications delivered to newspapers, periodicals or other news media for general information or public relations purposes if no charge is made by the newspapers, periodicals or other news media to publish or use any part of these com munications. (b) Communications to stockholders as follows: (i) Annual reports and interim financial reports. (ii) Proxy materials. (iii) Registration statements. (iv) Securities prospectuses. (v) Applications for listing of securities on stock exchanges. (vi) Prospectuses. (vii) Property reports. (viii) Offering statements. 4. “Affiliate” means a person who, directly or indirectly through one or more intermediaries, con trols, is controlled by or is under common control with the person specified. 5. “Associate broker” means a licensed broker who is employed by another broker. Unless other wise specifically provided, an associate broker has the same license privileges as a salesperson. 6. “Barrier” means a natural or man-made geographic feature that prevents parcels of land from being practicably, reasonably and economically united or reunited and that was not caused or cre ated by the owner of the parcels. (c) The address of a licensee’s statutory agency who is registered as the licensee’s statutory agent with the corporation commission. This subdivision applies only if notice of the stat utory agent is given to the department pursuant to section 32-2126.

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7. “Blanket encumbrance”: (a) Means either:

(i) Any mortgage, any deed of trust or any other encumbrance or lien that secures or evidences the payment of monies and that affects more than one lot or parcel of subdivided land. (ii) An agreement that affects more than one lot or parcel by which the subdivid er holds the subdivision under an option, contract to sell or trust agreement. (b) Does not include taxes and assessments that are levied by public authority. 8. “Board” means the real estate advisory board. 9. “Broker”, when used without modification, means a person who is licensed as a broker under this chapter or who is required to be licensed as a broker under this chapter. 10. “Business broker” means a real estate broker who acts as an intermediary or agent between sellers or buyers, or both, in the sale or purchase, or both, of businesses or business opportunities where a lease or sale of real property is either a direct or incidental part of the transaction. 11. “Camping site” means a space that is designed and promoted for the purpose of locating any trailer, tent, tent trailer, pickup camper or other similar device used for camping. 12. “Cemetery” or “cemetery property” means any one, or a combination of more than one, of the following in a place that is used, or intended to be used, and dedicated for cemetery purposes: (a) A burial park, for earth interments. (b) A mausoleum, for crypt or vault entombments. (c) A crematory, or a crematory and columbarium, for cinerary interments. (d) A cemetery plot, including interment rights, mausoleum crypts, niches and burial spac es. 13. “Cemetery broker” means a person other than a real estate broker or real estate salesperson who, for another, for compensation: (a) Sells, leases or exchanges cemetery property or interment services of or for another, or on the person’s own account. (b) Offers for another or for the person’s own account to buy, sell, lease or exchange ceme tery property or interment services. (c) Negotiates the purchase and sale, lease or exchange of cemetery property or interment services. (d) Negotiates the purchase or sale, lease or exchange, or lists or solicits, or negotiates a loan on or leasing of cemetery property or interment services. 14. “Cemetery salesperson” means a natural person who acts on the person’s own behalf or through and on behalf of a professional limited liability company or a professional corporation engaged by or on behalf of a licensed cemetery or real estate broker, or through and on behalf of a corporation, partnership or limited liability company that is licensed as a cemetery or real estate broker, to per form any act or transaction included in the definition of cemetery broker. 15. “Commissioner” means the state real estate commissioner. 16. “Common promotional plan” means a plan, undertaken by a person or a group of persons acting in concert, to offer lots for sale or lease. If the land is offered for sale by a person or group of persons acting in concert, and the land is contiguous or is known, designated or advertised as a common unit or by a common name, the land is presumed, without regard to the number of lots covered by each individual offering, as being offered for sale or lease as part of a common promo tional plan. Separate subdividers selling lots or parcels in separately platted subdivisions within a

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master planned community shall not be deemed to be offering their combined lots for sale or lease as part of a common promotional plan. 17. “Compensation” means any fee, commission, salary, monies or other valuable consideration for services rendered or to be rendered as well as the promise of consideration whether contingent or not. 18. “Contiguous”: (a) Means lots, parcels or fractional interests that share a common boundary or point. (b) Does not include lots, parcels or fractional interests that are separated by either of the following: (i) A barrier. (ii) A road, street or highway that has been established by this state or by any agency or political subdivision of this state, that has been designated by the federal govern ment as an interstate highway or that has been regularly maintained by this state or by any agency or political subdivision of this state and has been used continuously by the public for at least the last five years. 19. “Control” or “controlled” means a person who, through ownership, voting rights, power of attorney, proxy, management rights, operational rights or other rights, has the right to make deci sions binding on an entity, whether a corporation, a partnership or any other entity. 20. “Corporation licensee” means a lawfully organized corporation that is registered with the Ar izona corporation commission and that has an officer licensed as the designated broker pursuant to section 32-2125. 21. “Department” means the state real estate department. 22. “Designated broker” means a natural person who is licensed as a broker under this chapter and who is either: (a) Designated to act on behalf of an employing real estate, cemetery or membership camp ing entity. (b) Doing business as a sole proprietor. 23. “Developer”: (a) Means a person who offers real property in a development for sale, lease or use, either immediately or in the future, on the person’s own behalf or on behalf of another person, under this chapter. (b) Does not include a person whose involvement with a development is limited to listing property within the development for sale, lease or use. 24. “Development” means any division, proposed division or use of real property that the depart ment has authority to regulate, including subdivided and unsubdivided lands, cemeteries, condo miniums, timeshares, membership campgrounds and stock cooperatives. 25. “Distance learning” means continuing education or prelicensure education that is an online, planned learning experience with a geographic separation that may be synchronous or asynchro nous, that does not require real-time interaction between a student and an instructor and that uses a platform with self-paced or prerecorded lessons and materials that a student can access via the internet to proceed at the student’s own pace. 26. “Employing broker” means a person who is licensed or is required to be licensed as a: (a) Broker entity pursuant to section 32-2125, subsection A. (b) Sole proprietorship if the sole proprietor is a broker licensed pursuant to this chapter. 27. “Fractional interest” means an undivided interest in improved or unimproved land, lots or

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parcels of any size created for the purpose of sale or lease and evidenced by any receipt, certificate, deed or other document conveying the interest. Undivided interests in land, lots or parcels created in the names of a husband and wife as community property, joint tenants or tenants in common, or in the names of other persons who, acting together as part of a single transaction, acquire the interests without a purpose to divide the interests for present or future sale or lease shall be deemed to constitute only one fractional interest. 28. “Improved lot or parcel” means a lot or parcel of a subdivision on which there is a residential, commercial or industrial building or concerning which a contract has been entered into between a subdivider and a purchaser that obligates the subdivider directly, or indirectly through a building contractor, to completely construct a residential, commercial or industrial building on the lot or parcel within two years after the date on which the contract of sale for the lot is entered into, or for a or for a condominium as defined in section 33-1202, within four years after the date on which the contract for sale is entered into. 29. “Inactive license” means a license that is issued pursuant to article 2 of this chapter to a licensee who is on inactive status during the current license period and who is not engaged by or on behalf of a broker. 30. “Lease” or “leasing” includes any lease, whether it is the sole, the principal or any incidental part of a transaction. 31. “License” means the whole or part of any agency permit, certificate, approval, registration, pub lic report, charter or similar form of permission required by this chapter. 32. “Licensee” means a person to whom a license for the current license period has been granted under any provision of this chapter, and, for the purposes of section 32-2153, subsection A, in cludes original license applicants. 33. “License period” means the two-year period beginning with the date of original issue or renew al of a particular license and ending on the expiration date, if any. 34. “Limited liability company licensee” means a lawfully organized limited liability company that has a member or manager who is a natural person and who is licensed as the designated broker pursuant to section 32-2125. 35. “Live classroom course” means a course or instructional segment delivered in either an in-per son classroom instructional format or a synchronous remote instructional format that allows stu dents to observe and participate remotely in an instructional segment via livestreaming. 34. “Lot reservation” means an expression of interest by a prospective purchaser in buying at some time in the future a subdivided or unsubdivided lot, unit or parcel in this state. In all cases, a subsequent affirmative action by the prospective purchaser must be taken to create a contractual obligation to purchase. 36. “Master planned community” means a development that consists of two or more separately platted subdivisions and that is either subject to a master declaration of covenants, conditions or restrictions, is subject to restrictive covenants sufficiently uniform in character to clearly indicate a general scheme for improving or developing real property or is governed or administered by a master owner’s association. 38. “Member” means a member of the real estate advisory board. 39. “Membership camping broker” means a person, other than a salesperson, who, for compensa tion: (a) Sells, purchases, lists, exchanges or leases membership camping contracts. (b) Offers to sell, purchase, exchange or lease membership camping contracts.

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(c) Negotiates or offers, attempts or agrees to negotiate the sale, purchase, exchange or lease of membership camping contracts. (d) Advertises or holds himself out as being engaged in the business of selling, buying, exchanging or leasing membership camping contracts or counseling or advising regarding membership camping contracts. (e) Assists or directs in procuring prospects calculated or intended to result in the sale, purchase, listing, exchange or lease of membership camping contracts. (f) Performs any of the foregoing acts as an employee or on behalf of a membership camp ing operator or membership contract owner. 40. “Membership camping contract” means an agreement that is offered or sold in this state evi dencing a purchaser’s right or license to use the camping or outdoor recreation facilities of a mem bership camping operator and includes a membership that provides for this use. 41. “Membership camping operator”: (a) Means an enterprise, other than one that is tax exempt under section 501(c)(3) of the internal revenue code of 1986, as amended, that solicits membership paid for by a fee or periodic payments and has as one of its purposes camping or outdoor recreation, including the use of camping sites primarily by members. (b) Does not include camping or recreational trailer parks that are open to the general pub lic and that contain camping sites rented for a per use fee or a mobile home park. 42. “Membership camping salesperson” means a natural person who acts on the person’s own be half or through and on behalf of a professional limited liability company or a professional corpora tion engaged by or on behalf of a licensed membership camping or real estate broker, or by or on behalf of a corporation, partnership or limited liability company that is licensed as a membership camping or real estate broker, to perform any act or participate in any transaction in a manner in cluded in the definition of membership camping broker. 43. “Partnership licensee” means a partnership with a managing general partner who is licensed as the designated broker pursuant to section 32-2125. 44. “Permanent access”, as required under article 4 of this chapter, means permanent access from the subdivision to any federal, state or county highway. 45. “Perpetual care” or “endowed care”: (a) Means maintaining and caring, in all places where interments have been made, for the trees, shrubs, roads, streets and other improvements and embellishments contained within or forming a part of the cemetery. (b) Does not include maintaining or repairing monuments, tombs, copings or other man made ornaments as associated with individual burial spaces. 46. “Perpetual or endowed-care cemetery” means a cemetery in which lots or other burial spaces are sold or transferred under the representation that the cemetery will receive perpetual care or endowed care free of further cost to the purchaser after payment of the original purchase price for the lot, burial space or interment right. 47. “Person” means any individual, corporation, partnership or company and any other form of multiple organization for carrying on business, foreign or domestic. 48. “Private cemetery” means a cemetery or place that is not licensed under article 6 of this chapter, where burials or interments of human remains are made, in which sales or transfers of interment rights or burial plots are not made to the public and in which not more than ten interments or burials occur annually.

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